Mapletree Industrial Trust (MINT) has announced its first quarter results for the financial year ending March 2026, revealing a slight dip in occupancy to 91.4%, whilst achieving a strong rental reversion of 8.2%. The trust reported a 0.3% year-on-year increase in revenue to S$175.9 million, driven by higher contributions from its Osaka data centre and positive lease renewals, although this was partially offset by lower contributions from its US data centre portfolio, according to a CGS International report.
Despite the occupancy decline, MINT’s distribution per unit (DPU) for the quarter was 3.27 Singapore cents, a 4.7% decrease from the previous year, primarily due to lower joint venture contributions and the absence of divestment gains. However, excluding these divestment gains, the DPU would have only slipped by 1.5% year-on-year.
The trust’s management has indicated that gearing could reduce to 37% following the completion of the sale of three Singapore properties by the third quarter of 2025. This sale is expected to generate S$535.5 million. MINT’s strategy includes tenant retention and exploring divestment opportunities, particularly within its US data centre portfolio.
Analysts have adjusted their forecasts, reducing the FY26-28 distribution per unit estimates by up to 2.78% due to the anticipated income vacuum from asset sales. Despite this, MINT maintains an “Add” rating, with a revised target price of S$2.49, citing its resilient portfolio metrics and an attractive projected dividend yield of 6.3% for FY26. Potential catalysts for a re-rating include better-than-expected rental reversions, whilst risks involve non-renewals at data centre lease expiries and a global economic slowdown.
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